That tweet above was in reference to a combination of problems in India’s VFX & animation industry this year: R+H’s bankruptcy, Prime Focus running very low on cash late 2012, Reliance Mediaworks continuing to blow money away year after year, and outright fraud by bogus industry reports of growth and crooked education facilities.
This weekend another shoe drops as India’s Crest Animation closes:
The employees, who haven’t been paid their salaries in months, nonetheless did not anticipate such a move. “For almost two years our salaries have been an issue. Salaries have been ariving late and at times we only get a portion of it. As of today our salaries for the past nine months are due. But in all this there hasn’t been any talk of shutting the company down,” said another employee, who has been with Crest for the past 15 years.
Even with cheap labor in India, Crest Animation never made a net profit.
One of the main reasons I started this blog was because I felt the media reports that the VFX industry was suffering from a massive amount of work going to cheap labor locations like India was overstated. The vast majority of VFX work is going to expensive places that are able to offer huge market distorting subsidies.